CAIRO, Sept 6 , 2018 (MENA) - Finance Minister Mohamed Maeet said Eastern Company S.A.E. will sell an additional 4.5 per cent of its stakes at Egypt Exchange (EGX) in line with a governmental programme for floating shares of state-owned companies on EGX.
In a statement on Thursday, Maeet said state-owned investment bank NI Capital selected EGF Hermes to manage the sale of additional stakes from Eastern Company S.A.E. on the bourse.
He also said that Prime Minister Moustafa Madbouli has given directives to accelerate the implementation of the first stage of the programme.
Eastern Company is expected to rake in net profit of about LE two billion, he added.
The date for launching the new IPO of Eastern Company is being set in tandem with EGF Hermes in order to select the best timing at the bourse, he said.
Maeet said several companies will launch new IPOs in the last quarter of 2018.
He added that the government is deeply interested in carrying out the programme which will boost EGX and buttress economic reforms.
Eastern Company S.A.E. manufactures and trades in tobacco products in Egypt. The company, which has an authorised capital of LE three billion, offers cigarettes, cigars, and water pipe tobacco products. It also exports its products primarily to the Arab, African and European countries, as well as Malaysia, Japan, Thailand, the United States, and Canada.
The Giza-based Eastern Company S.A.E., which was founded in 1920, is a subsidiary of the Chemical Industries Holding Company.
CAIRO, Aug 29, 2018 (MENA) - Finance Minister Mohamed Mait has decided to keep the exchange rate of the US dollar for customs unchanged at LE 16 until the end of September.
The rate of the customs dollar hovers around 90% of its common price in banks, according to a recent statement by Mait.
On August 1, the ministry announced that the customs exchange rate would remain steady at LE 16 until the end of the month.
CAIRO, August 11, 2018 (News Wires) - Egyptian Finance Minister Mohamed Maeet has said the government will reduce its public debt to 92 percent of the GDP in the budget of the current Fiscal Year (FY) 2018/2019, the local media reported on Saturday.
"The government has enforced package of procedures to reduce the public debt to 92 per cent of the GDP compared with 98 per cent in the previous year," Minister Maeet said in press remarks.
The new financial measures intended to increase the state's public revenues and control the government's expenditures, the minister said, adding that the financial performance would be improved after new laws on tariffs and taxes take into effect soon.
The government's plans for diversifying the state revenue resource will add 10 billion pounds (56 million US dollars) to the country's treasury.
Dr. Waleed Gab-Allah, professor of financial and economic jurisdictions at Cairo University said, "Egypt's economy owns the workforce and the resources but lacks funds, which forced the government to borrow."
To compensate for the debt, the government had to reduce its dependence on loans, and increase its revenues, Professor Gab-Allah told Xinhua.
Part of the government's economic reforms, which started at the end of 2016, was using part of the surplus of some governmental private funds as public budget instead of carrying it forward to the coming fiscal years balance.
The revenues of that surplus be used for creating more jobs along with the country's other assets, the expert added.
Professor Gab-Allah expected success for the Finance Ministry's new measures, but believed its application is also associated with the world's fluctuating economy.
He added some economic ups and downs, like the increase in the world oil prices last year, had negative impacts on the government plans.
The Central Bank of Egypt (CBE) said on Monday that foreign debt has risen to 88.2 billion dollars at the end of March, with total public debt accounting for 86 per cent of the GDP.
LONDON, August 10, 2018 (News Wires) - Uncertainty over Brexit is depressing economic growth in Britain, finance minister Philip Hammond said on Friday after official data showed lacklustre year-on-year expansion.
"Clearly that uncertainty is having a depressing effect on economic growth," Hammond told broadcasters during a trip to central England to announce 780 million pounds ($996 million) of public investment in high-tech industry.
Brexit proposals set out last month by Prime Minister Theresa May should lead to economic growth broadly the same as if Britain were to stay in the EU, he added.
Hammond said that in the long run he wanted to see growth rates faster than the year-on-year expansion of 1.3 per cent recorded in the second quarter of 2018.
CAIRO, August 4, 2018 (MENA) – Egyptian Minister of Investment and International Cooperation Sahar Nasr said on Saturday that she has formed two joint committees from the Ministry of Finance and the Ministry of Trade and Industry for coordination to remove any obstacles facing investors.
The minister’s remarks were made during a periodic meeting with investors representing 17 firms in the presence of CEO of the General Authority for Investment and Free Zones (GAFI) Mohsen Adel.
Nasr said she is looking forward to developing GAFI in the coming stage, particularly in light of Prime Minister Mostafa Madbouli’s decision to restructure the authority.
Meanwhile, GAFI chief executive officer noted that removing obstacles facing investors is a top priority for the authority.
LONDON, July 31, 2018 (News Wires) - Britain's exports of financial services to the European Union hit a record high last year, highlighting the need for the City to preserve access to the bloc after Brexit, industry officials said on Tuesday.
Exports rose 3.6 billion pounds ($4.73 billion) to 59.6 billion pounds in 2017, the Office for National Statistics said on Tuesday. Exports to the EU rose by over 1.7 billion pounds to reach a record 25.9 billion pounds.
"The UK and the EU have a shared interest in maintaining as much of this cross-border flow of financial services as possible," said Stephen Jones, chief executive of UK Finance, an industry body.
Britain has proposed EU market access based on a more accommodative version of the bloc's trade regime known as equivalence.
Equivalence is used by Japan and the United States, to grant access if Brussels deems that a foreign country's rules are aligned with to its own.
Britain says this would force it to track EU rules, and that access could be withdrawn at short notice. Earlier this month it called for a more predictable version after Brexit, with a shared dispute mechanism.
Brussels wants to keep full control of equivalence.
After a meeting with Britain's Brexit minister Dominic Raab last week, EU chief Brexit negotiator Michel Barnier said any future financial market access will be governed by "autonomous" decisions on both sides.
"We recognised the need for this autonomy, not only at the time of granting equivalence decisions, but also at the time of withdrawing such decisions," Barnier said.
Final trading terms could take years and in the meantime banks and insurers are opening hubs in the EU by next March to avoid any disruption to customers.
The government is asking the sector to come up with ideas for widening the scope of financial services that could be covered by equivalence and making the regime more predictable.
"Given the complexities surrounding Brexit it's only natural that HM Treasury would consult with the sector on the EU's third country regimes," a spokeswoman for the City of London financial district said.
"The sector is clear that the current form of EU equivalence is not an appropriate basis for the UK´s financial and professional services sector to continue trading with the EU, so any 'enhancements' to these regimes would have to be substantial."
The finance ministry had no immediate comment.
The financial sector had wanted future trade with the EU based on mutual recognition or Britain and the bloc's accpeting each other's rules and cooperating closely on supervision.
Brussels dismissed it as trying to keep the benefits of the single market without the costs, forcing Britain to seek a less ambitious enhanced equivalence deal.
"Reforming equivalence is as big an ask as mutual recognition, but we have to play the game," one senior banker said. "The language of enhancing equivalence is hilarious. For Britain it means expanding access, but for France it means less market access."
($1 = 0.7618 pounds)